Financial reporting and accounting in the Netherlands
The Generally Accepted Accounting Standards in the Netherlands (GAAP)
and the International Financial Reporting Standards (IFRS)
are two different sets of financial reporting standards which are available to companies incorporated in the Netherlands
. While the IFRS have gained more popularity over the years, the Dutch GAAP are the locally accepted accounting principles.
The differences between the Dutch GAAP and the IFRS
can vary according to the type of company, the nature of the business, the industry and the accounting policies
established by the company internally. Our Dutch accounting firm
can provide complete accounting services in the Netherlands
The Dutch Generally Accepted Accounting Standards
The Generally Accepted Accounting Standards in the Netherlands
are based on a larger collection of laws, rules and regulations regarding the accounting process in the Netherlands
. The Dutch GAAP
includes the Dutch Civil Code
and the Dutch Accounting Standards
published by the Dutch Accounting Standards Board.
The Dutch Civil Code
is used for profit-oriented business entities in the Netherlands. Unlike the IFRS, the Guidelines on Annual Reporting from the Dutch Accounting Standards Board may be used by profit-oriented organizations as well as some not-for-profit organizations. Unlike the IFRS, the Dutch GAAP
contains some exemptions for small and medium sized companies and different guidelines for annual reporting exist for small companies.
The International Financial Reporting Standards
The International Financial Reporting Standards (IFRS) are composed of the entire collection laws, rules and regulations issued by the International Accounting Standards Board (IASB). They are designed to be used by for-profit legal entities and unlike the Dutch GAAP they do not contain special standards or exemptions for small and medium sized companies in the Netherlands.
If compared to the Dutch GAAP
, which can be regarded as a set of recommendations with less guidance for application
, the IFRS
are more prescriptive and in-depth. Our accounting firm in the Netherlands
can provide detailed information about the main differences regarding the general requirements for financial statements
, separate financial statements, the accounting method and many others.